About this document
Gordon Growth Model Spreadsheet Guide by Pro Resources is a document available to read on EtoBox.
The Gordon Growth Model is used to value the equity of stable firms that pay dividends equal to free cash flows. It assumes the firm will grow dividends at a constant rate indefinitely. Users input the current earnings per share, payout ratio, cost of equity or CAPM components, and expected long-term growth rate to calculate the intrinsic value. The model output includes the calculated cost of equity, expected growth rate, current dividend per share, and the stock valuation based on the Gordon Growth formul
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- Pro Resources
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- EN